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tv   Bloomberg Markets Americas  Bloomberg  April 24, 2018 1:00pm-3:30pm EDT

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find the framework so that ofether and with the paris the region and with the iranian leaders, managed to find a deal. therefore, i would like us to commit to that effect in the weeks and months -- weeks and months to come. this is the only way to bring about stability. france is not naive when it comes to iran. we have also a lot of respect whiche iranian people, through their history, its history has always shown its trends, but we try not to repeat the mistakes of the past. each time we tried to unilaterally replace the sovereignty of people, we stability.ut i believe the discussions we have had together make it
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to pave the way for a new agreements, an agreement on which we will work and beyond that european policies, we would like to involve the regions and russia. and turkey. it is also within this the long, together, in run, we can find a solution to the syrian situation. together we are engaged within the international terrorists,ainst and we will continue to act until the end and until victory. in the long wind, we need to win peace and make sure that syria does not fall into any germany in the region. to that effect, the approach which is agreed means that we all of thed work on
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situation in the region. to with these efforts contain iran in the region. we will continue to work to that effect within the un security council to make sure that humanitarian law, the prohibition of chemical weapons are fully complied with, and continue to shoulder responsibilities to that effect. we will work with partners in building a sustainable, political solution. an inclusive one that will prevent feeding terrorism in the future. we also talked about the climate ,nd we know that where we stand france will continue to work on major pieces, including the global compact for the environment. economic can say that
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businesses can continue to work and create solutions in the field, and we are both attached to that. it,rade, like you mentioned and i hear what you said and when you call upon fear and equitable trade. well we look past international trade, we have common challenges. there are weak capacities, which are well known, and we shall work together to make sure it doesn't destabilize our markets. i believe we can say that we are both attached to make sure that between allies, there is compliance within national -- international trade law. france has touched on that. we have preferences. there are situations we can probably improve. i believe that both you and i
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are also attached -- one to make sure our businesses, our can stay in a sustainable framework. mr. president, i meant to mention these few points, which you commented, as well. allow me to say the discussions we have had today and the ones we will have tomorrow are not only led by a historical our sincerey friendship, which i believe we share. madam,ou, mr. president, for these extremely warm welcomes and three days spent with you, and thank you, as well, for being there to meet the challenges for the united states of america, france, europe, and important for our peoples. thank you. thank you.
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president trump: i like him a lot. [laughter] president trump: first, i want to thank our vice president and caring for being here, thank you. i appreciate it. we had a wonderful conference today. especially the one on one in the oval office, we covered a lot of territory having to do with trade and iran. and various other subjects. i think a lot of good things will come out of our meeting, and i appreciate you being here. we will take a couple of questions. how about jeff mason from readers? -- from reuters? >> after discussions with president macron, what is your thinking on a timeline for bringing u.s. troops out of syria? you mentioned today that they've got the leader of north -- they thought the leader of north korea behaved openly and honorably. this is someone accused of starving his people, killing
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family members, what did you mean when you called him that? president trump: we will start with your second part of the question. i hope we will be able to eat in an open and honorable fashion with north korea. i started a process, and when i did, everybody got i was doing it wrong. for 25 years, people have been dealing and nothing has happened and a lot is happening now. verynk it is going to be positive, and hope it will be positive for north korea and south korea, japan, and the rest of the world. that iarting at a level should not have had to start. this should have been worked out a long time ago, many years ago. we were discussing that.we should not be having this situation happen and thenited states world. this should have been resolved by other presidents and other leaders of other countries a long time ago. with that being said, i think we are doing well.
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meetings are being set up, and i oft to see denuclearization north korea. a lot of concessions have been made. we have made no concessions, despite some media saying i have made concessions. i have not even discussed a concession. other than the fact that meeting is a great thing, and i'm sure that a lot of other people would have liked to have had the position we are having. i will say this. we put the strongest sanctions on a country that we ever have put on any country by far. china, president xi, has been very strong in helping us to solve the problem in his case at the border. he is allowing little to get through. i think he is doing that for a number of reasons. we have a good relationship and it is important in terms of trade. i do play the trade card. if you look at trade in china, it has not been fair for many years to the united states and we will solve that problem.
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we are having secretary mnuchin and the couple of other folks heading over to china at the request of china. they came here last week. we are having very substantive discussions on trade. i think it all plays to the border and the fact that they have been extremely strong on the border and very little has gone through, to the surprise of a lot of people. i believe the trade will work out but we all stash but i also think china has never treated us with more respect than they have over the last short amount of time i am president. i have a very excellent relationship with president xi, and i think it is important with what is happening with north korea. the end result is we will see. maybe good things will happen, and maybe we are wasting a lot of time, but hopefully it will be good for everyone concerned. as far as syria, i would love to get out.
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i would love to bring our incredible warriors back home. they have done a great job. we have essentially just absolutely obliterated isis in iraq and syria, and we have been a big favor to neighboring countries, frankly, but also to our own country. with that being said, emmanuel and myself have discussed the fact that we do not want to give iran open season to the mediterranean, especially since we really control it to a large extent. we have controlled it and set control on it, so we will see what happens. we are going to be coming home relatively soon. we finished at least almost our work with respect isis in syria. isis in iraq, and we have done a job that nobody has been able to do, but with that being said, i want to come home, but also with having accomplished what we have to accomplish.
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parte discussing syria as of an overall deal. when they made the iran deal, what they should have done is included syria. when i say should have, before iran, $150 billion and $1.8 billion in cash. if you think about this, before giving this kind of tremendous ok, $150 billion, and $1.8 billion in cash. in barrels, i hear in barrels and-- boxes, i hear, they should have made a deal that covered yemen, syria, other parts of the middle ist, where iraq -- iran involved. they did not do that. so we want to come home. we will be coming home, but we
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want to have a very strong -- we want to leave a strong and lasting footprint. that was a big part of our discussion. >> a follow-up, if i may?in north korea , you said you believe in complete do visualization -- denuclearization. what does that mean? president trump: they get rid of their nukes. it would be easy to make a deal and claim victory, but i do not want to do that. i want them to get rid of their nukes. president macron, the president referred to your meetings between a potential deal between the two of you on iran. can you give us a sense of what they might be and are you confident on assurances from president trump that the european union will be excluded on terrorists from steel -- tariffs on steel and aluminum? president macron: i went the issue on the trade issue to be clear, when you look at the trade issue between our two
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countries, their balanced. there is no unbalanced relationship. second, we are following and respecting your rules because we are the one who contributed to the creation and we think it makes sense to respect the rule you decided to create. in general, in life, that is a good method. third, because i do believe that we have a very first issue on in capacities of steel and aluminum, it does not come from europe or france, and it is good to work together when you are allies, especially when you work so closely together on security issues like iran and syria. i am confident about the future of the trade relationship. i think it is part of a broader picture, where our interests are aligned. situation, and i
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introduction,n my we want to adopt a new approach, and it is what president trump said. we have nuclear on the short-term, nuclear on the long-term, ballistic activity, and the original presence of iran. we want to fix the situation. first one.rt of the in thehave to work on regions, the p5 and our allies, third way we can fix the situation. this is the only way to process sovereignty in the region and build piece. otherwise, we will have to come back into the region.
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for sure. i am very happy about the discussion we had together because we raised a very new issues and solutions together, especially the fact that the syrian crisis and situation should be part of this broader feature. and the fact that we are here ,nd we are today in syria together, as international coalition against isis, but tomorrow we will have to find a way to fix this situation from the political point of view, not the military point of view, view,means to set which means to set up a series of agreements as part of this big deal in order to be sure that syria tomorrow will be a sovereign country with inclusiveness and free people in a situation to decide the future. this is very important. that is our duty. president trump: i think we will have a great shot at doing a much bigger maybe deal, maybe
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not deal. we will find out that we will know soon. mr. president? president macron: [speaking french] >> a question from the french press. from the french have known, mr. president, you said there was no plan b that the iran deal was to be preserved. now you are talking about a new deal with iran, why did you change your mind? approachoin the strong suggested by president trump? is it because you cannot convince him? think then, do you author who signed the deal -- when i said -- when i said there is no plan b, there is no bth
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planets. iran, you can go back to what i said at the un's general assembly in september. i always said there was the jcp away, but we needed to add to it. the ballistic regional and i do not know what president trump will decide regarding thejc jcpoa. responsibility. it is the first pillar of the framework described, so we are not moving from one deal to another, saying it is one aspect of the problem. i have never been as critical of the jcpoa as president trump because i believe we cannot to it. no matter the decision president trump will take, i would like us fourrk on the deal with
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pillars, including what is already covered, ongoing current nuclear activities, the laundering of other activities, ballistic activities, and regional influence. this is constant. over the past few weeks and today, we have been able to talk and details about this topic, including the situation in the region. i believe we have a common reading of what is happening in syria, yemen, and iraq. and on the fact that the nuclear issue is not the only one, that there is a problem with the ballistic activity of iran and their presence in a number of countries in the region and their willingness was to set conditions for the stability of the region. convergence, this the idea of moving on to a new the that would include
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solution for syria, i believe is a strong step forward thanks to the discussions we have had today. i would like us to work together the all of our partners and ministers of foreign affairs already gathered the small group. anytime soon. and of course, for the regional powers to work at the level of this small group. we also shall have some privileged -- private discussions with russia and turkey, including on syria. as for now, we will work using -- workhod in favor towards a deal. i believe we can both combine common views and differences because we are not in a vacuum.
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i always said we should not tear jcpoa.thejcpoa -- the once we are placing ourselves in the focus of putting together a broad agreement covering the topics mentioned, it is different. first, we can take on board the concerns and criticism of president trump regarding this , thiswhich like i said deal was supported by the former american administration and --vious administration, but and it is also about respecting the sovereignty of the states of the region.
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it is about building a framework to peace building, and i think this is what we have been agreed upon today. it isn't about tearing apart and agreements and have nothing but building something new that will cover all of our concerns. president trump: i might add what was alluded to, in countries that are in the area, some of which are immensely therey, would not be except for the united states, they were not last a week. we are protecting them. they have to now step up in paper what is happening because i don't think france or the fored states -- and pay what is happening because i don't think france or the united responsible. be i think united states is embarrassingly in the middle east, as you have heard me say
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before, and i do not take responsibility but i would be embarrassed if i had to. $7 trillion. our we want to build infrastructure -- everybody says we want to be careful with their money. when we want to fix highway or build schools and lots of other things, tunnels, bridges, they say, let's be careful with our money. yet, we have spent $7 trillion in the middle east, and we have got nothing for it. nothing. less than nothing, as far as i'm concerned. that is over an 18 year period. the countries that are there, , areyou all know very well immensely wealthy. the are going to have to pay for this, and i think the president and i agree on that and they will. they will pay for it. we have spoken to them. they will pay for it. the united states will not continue to pay, and they will also put shoulder -- put
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soldiers on the ground, which they are not doing. we will, in fact, bring lots of people home. we will have a strong blockage to the mediterranean, which to me, is there important. if we do not, you have iran going right to the mediterranean. not going to have that. but there is a chance that nobody knows what i'm going to do on the 12th. although, mr. president, you have a pretty good idea, but we will see. we will see if i do what some people expect, whether or not it will be possible to do a new deal with solid foundations because this is a deal with decayed foundations. it is a bad deal. it is of that structure. it is falling down, should have never, ever been made. i blame congress. i blame a lot of people for it. but it should never have been made.
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and we are going to see what happens on the 12th. i will say that if iran threatens us in any way, they will pay a price like few countries have ever paid. ok? yes, john? john roberts of fox. >> thank you, mr. president. i have a question for president yourn, as well, but nominee to run the veterans affairs administration has run into political headwinds on capitol hill with serious allegations being leveled at him. know ofdering what you those allegations and you intend to stand behind him? president trump: i have not heard of the tickler allegations but that will -- in particular allegations, but i will type he is one of the finest people i have met. i think, speaking for melania also, he has been the doctor for
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president obama, president bush, for me, i got to know him pretty well. he is a great doctor. i know there is an experience problem because of lack of experience, but the veterans administration is very important to me. we have done a great job with the accountability act and now we are working on choice, it will happen. we will take great care of our veterans. that is very important. we have done a great job. but i told admiral jackson a little while ago. he said, what do you need this for? this is a vicious group of people that maligned and i lived through it, we all lived through it, you people are getting record ratings because of it, so congratulations. i said, what do we do for? he is an admiral, a great leader, and the question him about every little you know, with the success of
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what will hopefully soon be secretary of state pompeo, everybody was surprised. i heard 10 minutes before the vote yesterday on committee that he will not be approved at committee, which it be the first time in many decades something like that would have happened with regard to a secretary of state. except i spoke to rand paul, and he has really never let me down.rand paul is a good man . i knew things that no the else knew, and rand paul said, i will change my vote. and he voted was surprised. he got 11-9 vote because johnny isakson's vote counts if it wasn't the deciding vote, so it was 11-9, and there was one vote -- what would you call that, john? not present. >> present. president trump: present, ok, so 11-9.
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a terrific thing, but they fail to stop them. now they say, who is next? person, admiral jackson, dr. jackson, a wonderful man, i for? what do you need it as far as experience, the veterans administration, which is approximately 13 million people, it is so big. you could run the biggest hospital system in the world and it is smalltime compared to the veterans administration. nobody has the experience. he is a leader and good man. i told him, you know what, doc? you are too find a person. his son is a top student at annapolis. he is a high-quality person. i said what do you need it for? it will be his decision that he will be making a decision. ,hey failed with mike pompeo and that was a big hit because they thought they could stop him. the democrats have become
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obstructionists. that is all they are good that. they are not good at anything else. they have bad politics. the one thing they do is obstruct, and that is why i am waiting for -- you would never believe this -- i'm waiting for a very good people like the ambassador to germany -- hasn't been approved jet, 11 months or 12. we had angela merkel coming to the united states on friday. we still don't have our ambassador. , and many of the papers checked it out yesterday and actually said i was right, but it would be nine years before these people -- we have hundreds of people in waiting to be approved -- and the democrats are taking 30 hours per person, the maximum time. they are obstructionists. that is very bad for our country. i said to dr. jackson, what do you need it for? we will see what happens. i do not want to put a man through who is not a political
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person. i do not want to put a man through a process like this. it is too ugly and to discuss the. we will see what happens. >> are you saying you will stand behind him -- president trump: i would definitely stand behind him. he is a fine man. i would let it be his choice, but he is a menu who has been an extraordinary person. his family, extraordinary success. great doctor, great everything. he has to listen to the abuse -- if i were him, -- actually, in many ways i would love to be him. but the fact is, i would not do it. to be abused by a bunch of politicians who are not thinking nicely about a country? i do not think you should do it, but i would spend the him -- i would stand behind him. if >> i could direct the question to you, as well, you said you and president trump
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came to some agreement on syria? how long do you believe u.s. troops need to stay in syria? do the defeat of isis? or through the stabilization period until an alternative to the assad government is stood up? president macron: first about, let me say how proud we are to be a part of the international coalition on the united fight against isis. we decided to increase our contribution, and we are totally involved in this work against isis. the very first goal of the intervention and international coalition on the ground is to finish this work with them, with isis, and definitely to finish with our enemies. are isis and the other terrorist groups. presence,s military and beyond our troops on the
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ground, we will have to build, -- that is a diplomatic work that we have already started but we have to finish i wouldinish for separate -- finish. i would separate the two issues. at the same time, we have to open a new work together in order to build in the other region a new framework and especially in syria. ssess during the coming weeks and months will we have to do. when we are at the end of the
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war, yup the enemy, so we are say we will leave the floor, that is impossible. for sure, what we want to do is finish this war with our inops and to have peace this region. that is our duty. and allth our diplomats of the lives in the region and the people involved. pres. trump: we have finished with isis and we are going to be making some big decisions and a are workingut we very closely together with france and the president. it.k you very much for presidents macron, you have
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enjoyed a very friendly relationship with president trump -- quite unusual compared to previous presidents, but at the same time, we can see that you do not agree on a multitude of topics. it seems like the initial deal with iran cannot be saved, so what about this relationship -- canada -- can it be beneficial to france and to europe? is that the case today? definitely. i believe the reason we enjoy this relationship is because of the relationship between our countries for -- countries. we enjoy this relationship because we are not typical politicians.
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as we are not able to easily change one's mind. if you watch this, you will have the answer to your question for it -- question. , we have decided to work towards a deal that will enable us to deal with the nuclear issue but also treated together with another three issues which are not being dealt with so far. had the conclusion been that the u.s. would walk away and france would not to move, our friendship would be wasted. to making sure that we each take account the position and the interests of all reciprocal countries. it is unprecedented.
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we have never before taken joint .ence on syria or iran there is intense work between ourselves, otherwise, we would not be in the position to do it. in the past, sometimes france argued that it was time to take action against chemical weapons and france was not followed by its allies and the united states. it is not what happened this time. we decided together what was possible and what was not. a militaryd a level localfter operation. please allow me -- after a level
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all the cooperative -- after a level of cooperation. we were able to do so thanks to this relationship. to the credibility of the international community against the use of chemical weapons, you have the evidence that shows the relationship between our two countries and our friendship that enables us to achieve results. we have it very much in common. -- and most things we can agree with that we can change and be flexible. in life you have to be flexible, and as leaders of countries, you have to show flexibility. think we actually get along on many of the subjects we discussed today. france is a great country and i
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believe france will be taken to new heights under this president. anis going to be in -- outstanding president. it is an honor to call you my friend. thank you. [applause] pres. trump: thank you everybody. >> that was president trump with french president emmanuel macron. president trump and president macron talked about everything from syria to the iran nuclear deal and president trump praising france'. deal, president to macron -- president macron proposing different ideas. and on trade, president trump
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talking that secretary mnuchin's visit to china. for more analysis, let's bring in charles lichfield joining us from london. charles, thank you for sticking around. talk a little bit about the ironically or deal -- the iran nuclear deal first. ,iran's influence is it something that president trump can actually accept? , these are the first steps that europe has made towards trump's demand for more constraints on iran. the question is whether europe can go any further. i do not think they can. there was a subtle moment in the
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press conference where president trump said, you will see what happens on the 12th of may. beiously, they might something that europe is willing to go slightly further on. on,thing has been agreed but they are not willing to tell us yet. >> exactly. he said president, you have a pretty good idea to president m acron. let's bring in chief correspondent kevin's a really. what are people saying that might have meant? >> that was a key moment. better than anybody in the world knows what decision 12thrump will make on may regarding whether they will stay in or out of the iran nuclear de
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al. president trump also pointing to china saying that he's planning chinese tobring the the table with getting a better deal with iran and north korea. sitting on the front row was secretary of commerce wilbur ross and secretary mnuchin who we just learned will be traveling to china over the next few days. the president also giving a shout out to bob like hauser -- bob. no question that president macron on the issue of trade would like to see those steel and aluminum tariffs permanent. issue ofat on the syria, both presidents suggesting that they are in this for a longer term commitment. urging othermp
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nations that they are going to have to put boots on the ground beyond american troops. other nations will have to come to support in similar way to france. mentioning,was president trump urging nations to pick up defensive spending. how will this play into other nations and their middle east the strategy? sure he wasm not talking to middle eastern nations -- other european nations, but also nations in the middle east. i think this is a long-standing issue for the u.s. people need to piggyback on their investment in their security and other states are investing but it is quite
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complicated for middle eastern states to get involved. on syria, this'll be regarded as the biggest breakthrough. achievement that we can see so far that is visible from his press conference, the french were reasonably confident they could argue that mr. trump should stay slightly longer. mr. trump said exactly what they wanted which is that he would only consider pulling u.s. troops out of syria when there is a result and there has been a point for them staying there. , president macron said that we raise new issues and new solutions antenna they did not have the same starting positions. erkel add toela m rhetoric?
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kevin: that is a great point. it is not just france but the u.k. that is urging the united states to stay in syria. there are even republicans that is this the best time to pull out of the deal? from president trump's perspective, he wants to make sure these nations are not just taking advantage of a good business opportunity. it is just within the last few years that the exports from it -- iran to european counterparts has increased exponentially. president trump does like the committedfrance has to increasing its defense spending by 35% over the next eight years. the 2% nato commitment that we have heard from president trump 20 meets
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with world leaders urging them to pay their fair share as he often says. the geopolitics, the business of this is very quickly shifting. german chancellor angela merkel will echo that. kevinin's a -- cirrilli, thank you so much. >> still ahead, emerging markets. t, thisk with felipe nex is bloomberg. ♪
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♪ live from bloomberg world headquarters, i am vonnie quinn. are getting a selloff which
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is being exacerbated by a drop in industrials, and oil company. 8.5% in the s&p 500 is one of the worst performing. caterpillar is down more than 6%. the dow is down 2%. the s&p 500 down 1.4%. wells fargocheck on whose annual meeting has just finished. it is a quarter percent higher on the session. that meeting through a lot of attention from protesters. all directors got 89.9% of the vote in their favor. 92 .4% of shareholders approved executive pay. did not falltoday on deaf ears but did not have impact on voting. interesting interview
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from the emerging markets world. >> thank you. we are seeing the surge. chile's stockter record anded to a the market index touched a four-year high. chile'sas returned as finance minister. thank you for being with us. we were delayed because of this prescott with between mr. trump and mr. macron. president trump has talked about sending secretary mnuchin to china to smooth things out. is part oft chile the trans-pacific partnership. it was signed in santiago last month. where are we in the process and what would you say to president trump bring up the idea of
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rejoining the deal? felipe: first, thank you. pleasure to be here. we have the opportunity to discuss that the secretary mnuchin. haim visited us in santiago. we have a trade issue and the tpp. on dvd, i think it would be in the u.s. interest to get int -- on tpp, i think a be in the u.s. interest to get into it. but it would be in the interest of tpp to have the u.s. in because it is an important part of the world economy and the main economy of the world. by withdrawing from negotiations, this could be significantly improved. i am not in a position to leave the door open, but with the position of chile, we would
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welcome that the u.s. reconsiders its participation. but the 11 members have signed the agreement, so would you be able to bring the agreement to be able to implemented by the end of the year if the u.s. was to join? >> it would be more complicated. i think that the fact that the tpp with the u.s. -- we are happy with the tpp as it is, but i think it can be improved. if we have the u.s. in, it would be a different thing. i understand the u.s. has different priorities. expressed our concerns and this was widely debated at the g20 meetings in washington last week, that we cannot just stand idle in the f ace of a trade war. avoided andould be
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we hope the parts would come to the negotiating table and resolved differences and not over trade escalation. even chile that has trade withments with the -- 64 countries, but we cannot stand idle and watch. we would be involved. shery: you have pledged to reverse chile's credit rating. how confident are you that you will be able to do this within your it administration's term? >> it came as a shock to us last credit rating,'s we were downgraded and put in a negative outlook by moody's. a common nation if you look at the credit rating agencies -- it was a onation --
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combination. we want to lead the chilean economy to higher growth and 4% growth of the next for -- four year period. we can stabilize the level of debt to gdp and we can do that with higher growth and more consistent situations, and i thek will be able to regain credit ratings that were lost. shery: quickly, you are talking about's measures -- about meas ures but wouldn't that weigh on growth? >> well we are being a little
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more countercyclical. economics will teach us that the fiscal policy will likely be countercyclical because of you are the other way, you will exacerbate growth. we are working on a new austerity package that will be released shortly. this is the way to get back. this is what our president once to give to the government. shery: you can do $7 billion? >> we do not know exactly how much we will do but we will increase the $500 million that we have already announced. shery: thank you. felipe: thank you. vonnie: u.s. stocks are selling off at this hour. steam, industrial
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losses and the u.s. 10-year yield rose above 3% since the first time january 2014. guest has investors finally waking up to the reality of tighter financial conditions. dan is the ceo -- jane buchanan and it has been a top environment. > it is incredible, for example. we have exceeded over 200 point drop. we were maximum loss of two under 73 points. this is incredible volatility that is pulling up or down a very difficult environment. are you deciding where to leave your money, what strategies in terms of hedge funds, and whether to pull your
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money or weight? jane: we cannot predict the markets. what we look for is fundamental value. we look over the long-term fundamental values. it makes it choppy as the markets go up and down, but one of the things -- both europe and the asian equity markets were down big in the first quarter. one of the notable moves that was seen was investment grade does that tell you and where can you find opportunity? jane: spreads are really tight so what you are seeing is a tightening in high yield which is coming in. people are desperate for yields even though the 10 year has broken through the 3% yield. we are now seeing a lot of volatility, yields rising, but
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we also have so much from the treasury market. how does that play into the equation? jane: what you say is true but on the other hand, you have a lot of people who want to keep their assets and u.s. dollars and securities. there's a tremendous amount of assets overseas that once u.s. dollars so i am not sure how the supply and demand is going to balance out. >> what are your best managers telling you, are they okay? jane: the hedge fund industry as a whole was essentially flat for the first quarter. when you look at these ups and downs, this is why you want to be hedged and people are giving more money to the programs. what we have seen with managers that they are trying to be prudent. we do not know what is going to happen. >> how important is it to be flexible in this environment? >> it is very hard.
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comes, youity crunch denied the powder to dry so it is a very tough decision. >> you mentioned europe and asia, are you finding more opportunities in those markets? >> tremendous opportunities for europe and asia. the european and asian portfolios of outperforms. there are just less people looking at the issues and you are seeing more fundamental issues with the geopolitical environment today. >> jane, thank you so much for coming in. jane buchan. are seeing markets falling to new session lows. this is bloomberg. ♪
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>> it is 2:00 p.m. in new york. i am julia chatterley. >> i am julie hyman in for scarlet fu. welcome to bloomberg markets. ♪
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>> we are alive and bloomberg world headquarters in new york. here are the top stories we are covering on the bloomberg and around the world. u.s. equities falling sharply as techpillar spooks and crumbles. the french says he is open to a new iran nuclear deal. and to the u.s. markets close in two hours. let's get a check with abigail doolittle. abigail: a big selloff for the major averages. all three major indices are sharply off.
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today, pretty distinct. the worst day for these major averages since april 6. oil, down 1% really completing this risk off picture. earlier today, the 10-year yield heading 3%. plus, possible tensions around a new iran nuclear deal. risk off, we check out the sectors for the s&p 500, the picture is clear. earlier today, 10 of the 11 s&p 500 sectors were higher and now they are lower. despite the fact that the yields are higher and real estate, yields not even helping financials. on the bottom, the industrial sector is down 3.8%. it is the worst since february. julia mentioned the big dragon that as caterpillar. this tells the story of the day. been slightlyd
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higher in the open. but then on the conference call, management said that the q1 is the high water mark for the company. it is suggesting that 2018 is not going to be as strong as the first quarter considering investors and traders are typically buying for the future. it is hard to make sense of that. we see that shares are trailing off. down 6%. m.other industrial drag is 3 that is another big drag on the dow. dow isson why the underperforming, down nearly 9% which is its worst day since 2006. they are basically suggesting that there could in fact to be weakness ahead for that industrial company ahead in 2018 leading investors to wonder what is wrong with the sector going
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ahead. that is why we are seeing a strong selling reaction. lockheed martin are down, they beat estimates as well, but there is a disagreement between the company and the air force about corrosion on the f-35 jets . out of, another sector down sharply with technology. alphabet, they beat estimates as facebook is down nearly 4% before they report earlier this week or later this week. to see the degree of the selling, tech seeing a huge q, this isr the nasda the char of the faang trading. it shows the daily swings for the faang trading. we are looking at the biggest decline.
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so lots of volatility on the day. >> we have more. tech earnings to calm, we are going to talk about that. thank you, abigail. let's get to first word news. >> iran's representative to the united nations told the conference that iran's landmark nuclear deal, "will not to be altered." ed or he told a u.s. in his words that they will be responsible for any consequence. sins ands. policy on and big -- an u.s. message that the u.s. is not a reliable party in any lateral agreement and cannot be trusted. mark: earlier today, president
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trump said that at the iranians restart their nuclear program they will have bigger problems than they ever have before. ian prime minister justin said that his citizens should not live in fear after a van to kill people. at this time, we have no reason to suspect that there is any national security element to this attack. obviously, the investigation is not complete. mark: a judge in canada has ordered that the 25-year-old suspect have 10 counts of first degree murder.
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according to a person familiar with the matter, the attorney general says he will consider stepping back from specific questions tied to the probe. recused himself from the investigation into russia interference in the 2016 election which is now led by special counsel robert mueller. i family spokesman says former president george h w bush as doctors treat him for an infection that is spread to his blood. mr. bush has been hospitalized since sunday. that was the day after attending the funeral of his wife, barbara. the former president has parkinson's disease. global news, 24 hours a day powered by more than 2,700 journalists and analysts in more han 120 countries. i am mark crumpton, this is bloomberg. thank you, mark. let's get back to the markets. joining us is editor of
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bloomberg's top blogs. it is good to see you. caterpillar seems to be the trigger. do they encapsulate the concern that the first quarter was as good as it is going to get? >> absolutely. andou look for it into 2018 2019, the earnings growth was not going to be there, at least not to the pace we have become accustomed to. caterpillar decided we are going to put it all out there. the earningswhen call started around 11:30 and you look at where the market was, it was about flat. it has been down the staircase ever since. abouty talked infrastructure investment in china, the united states, and you mentioned, but there were other things going on as well. the 10-year yield which we had been watching.
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all me briefly touching 3%, but that stimulated some calls as well so you can take your pick as to what is driving this market. >> the 10-year yield is factoring and, but the markets seem to digest that fairly well. you do not see as you just selloff huge panic, but you are talking about all of these events. tightenings, financial conditions, relative to where they were at the beginning of the year, the spread, and this is requiring people to revalue stocks, re-rate credit, and reassess risk. >> and we cannot ignore the fact that we have all sorts of tech risks. it is down 1.5%. >> what are we going to get out of tech? there was optimism there and tech is the heavy weight in this market in terms of its influence, but we are not seeing this in semiconductors, there is concern about the internet media
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space, and now you have concern about other sectors on the software side that the demand might not be there. talking about not a cratering of sales are earnings, but you are talking about a slowdown in the growth and as got to be repriced in this market. >> it is interesting because the narrative keeps changing day by day. , there wasthe week concern about inflation and higher materials prices, but the commodities have now come off, particularly the metals. >> yeah. you have seen from some of the earning reports talking about inward costs and the effect. there is also some inflationary pressure on the consumer side. you look at gasoline prices and there are a lot of issues they are aware there is not panic mode, but will have to reassess
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what your outlook was going forward. >> that was some of the analyst commentary around procter & gamble. >> thank you so much. the shakedown in tech stocks continues, semiconductors raising alarm bells ahead of apple's results next week. plenty going on in this space to discuss. with dan.scuss thank you so much. preview that the we are expecting as far as apple is concerned and some of the noises in particular that we have had from asia. is that what we are seeing -- panic mode? >> yeah. when you look at apple in particular, the cab driver knew there was going to be a soft june quarter. now we are really seeing units
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come down to the mid-30 million for june. disappointing, but now the elongated cycle continues to push out, the numbers are coming down. now you really start to get a battle in terms of what the multiple is going to look like going forward and the buyback factored in. andou talk about this a lot you talked about it being a "prove me quarter required" for alphabet. i want to jump to tomorrow. the initial optimism and that is back as well. as far as you me are concerned? >> advertisement was strong which is really the focus in the words out there giving the regulatory issues, but it is capping at a cost.
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that is the big issue on margin. the good news was outweighed by the bad, and ultimately, the bulls were hoping for a blowout quarter on advertising, but you did not see it. >> is it going to play out in the long-term? is that something that is going to be able to catch up? the stuff that is spending on us to catch up with apple and cloud consumer products -- is it able to do that? >> they need to do this. >> it is not even an option? the advertising side, but diversifying and some of the other technology areas. it is an arms race and all of technology -- in all of technology. you look at facebook tomorrow, we saw some other articles out would say zuckerberg
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and facebook passed the first test, but this is not going to be the end. you will see stuff to go out. tomorrow, it should be an in , the longer term that is the issue. you will continue to see those black clouds around the stock until they can prove that that to $2 billion a year on advertising is there. bad news is going to continue to happen. they passed the beltway with a lot of those softball questions and now it is about gdp going forward. >> should people be thinking about big tech differently right now? when we look at all of these companies, nursing to be turning points. we have been writing the backs -- we, being the markets, is that not going to be the case anymore? >> i think it is more a transition. blowouts numbers and
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expect to see them out of amazon. but facebook and out for that -- , i dot o -- alphabet think you will start to see more risk factored in, but number still go high. you are going to see the volatility. especially, cambridge. it has been the game changer with regulatory risk and plus azon-ufc match that is going on. >> i am really happy that we are sharing netflix because it is taken back all of those 9%+ poster earnings rally that we saw. if we are talking about going into a period where you separate , these are some of the ones
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that you argue have the greatest strength to decorate themselves and they are also being punished here. dan: is a groundhog day from what we saw in early february. feel like the window, but you got to look at the fundamentals. this is still the middle innings of a massive growth cycle. and important point, we have circled back to where we began. great to chat with you. ron's new call. why he says he is open to an .xpanded iran nuclear deal a quick check on markets right now, down on 2.1% for the dow. taking back some of the losses in the last 20 minutes or so, but we are still down 2% for
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both of those names. whether it is the pressure that we are seeing on the tech stock and keeping the rates close. from new york, this is bloomberg. ♪
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>> this is bloomberg markets. i am julie hyman. >> i am julia chatterley. president trump and president macron wrapping up a joint news conference moments ago. president macron said he wanted -- even if the united states withdraws the 2016 accord. we are joined now by kevin cirrilli.
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great to have you with us. the president always has said that this was not the perfect deal, but the us that they could do. do you think that he is been backed into the corner to agree to something different because i he was fearful the president could walk away? interesting was an point in their interactions where president trump says that nobody knows, with the exception of president macron, what exactly president trump will decide on may 12. nobody had a chance to ask president macron what he thinks president trump will do. the whole basis of the iran nuclear deal was that on the basis of denuclearization, sanctions would be lifted. clearly, the business interest and the financial dealings and regulatory structure while still very rigid, is opening as a
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result of the iran nuclear deal and that makes it difficult for countries like france and germany. the chancellor, coming here on friday to meet with president trump and it makes it difficult for him to support the president trump is saying that he wants to tear up that nuclear deal. >> the relationship between these two men is quite fascinating. ir,y had one of the whatever that shake was -- moments.oem -- inform this? that ? what does it mean here? kevin: i will leave the rest of the body language experts.
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but president macron back in day he said publicly, "from one, we have seen eye to eye on the issue of terrorism." both president trump and president macron agree with the commitment and longer-term commitment that must happen with regime buthe assad on the issue of something like trade, which president macron would like to see these aluminum permanenttariffs made by the united states, they differentiate on the issue of environmental protections. and obviously, the issue of iran . what is interesting about iran is that both presidents agree that iran should not have a nuclear weapon. bringey are seeking to that about is very, very different. president trump said something interesting with regards to iran and north korea. he pivoted -- he brought in
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china and pointed to treasury secretary steven mnuchin who is sitting in the front row. earlier this morning, the president telling reporters that secretary mnuchin a be traveling to china in the next couple of days. let's get a check on market as we had to break. we see stocks are up off the lows slightly of the session. industrial now the worst-performing group. headline thisas a morning, stock market has saving grace in industrial earnings. >> yes. alphabets. >> that turn on a diamond and now industrials are the worst-performing group. >> from new york, this is bloomberg. ♪
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♪ >> this is bloomberg markets.
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i am julia chatterley. >> i am julie hyman. this is time for the bloomberg business flash. pimco's choosing austin, texas for its new office. about half of the employees will work in technology while others will be in marketing and wealth management. that office will open later this year and expect that the house 200 workers by 2019. spotify has introduced its mobile version of its free music service that target is 1.5 billion youtube users. spotify already operates the largest paid music service in the world but expanding what it ough -- offers for free. amazon wants to get in your car. delivernow unlock and packages to your buick, gmc, or cadillac and they must be a 2015 model or newer.
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amazon's news service is now available to all prime members through the amazon key app. that is your business flash of day. dow down and the 10-year yield now touching that they percent level. -- that 3% level. another point of weakness for these markets. plenty more to come, from new york, this is bloomberg. ♪ >> from bloomberg world
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headquarters in midtown manhattan, this is "bloomberg markets." commodity markets are closing in new york.
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here are some of today's biggest movers. geopolitics giveth and taketh away. french president macron discussed a new deal for new iran sanctions and oil falling as a result, even though president trump was sort of opaque on which direction he will go. the lows of the session is falling that, along with the risk off for stocks as well. another bad day for aluminum as the markets still correct from the u.s. treasury suspending those sanctions. the company could be removed from the sanctions list permanently. in the indian government are saying that company is considering challenging u.s. aluminum and steel tariffs at the wto. despite promising whether --
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er, greens and soybeans -- crazy and soybeans are on the rise. -- grains and soybeans are on the rise. president macron says talks will focus on a broader containment strategy for toronto -- tehran's activities in the middle east. he spoke during a joint conference at the white house with president trump. , ballisticnuclear activity, a presence in iran. is part of the four pillars. mark: iran's representative to the u.n. told the yuan nonproliferation conference in
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vienna that he hopes the nuclear deal will not be altered. stoltenberg paid a tribute to australia's military losses as he met with prime minister malcolm turnbull today. celebrates fallen servicemembers in australia and new zealand. both agreed to collaborate on the provision of the use on theical weapons following march 14 attack of the u.k. on a former russian spy and his daughter. >> we discussed our joint response to that act and the decision to expel russian clear messaget a this type of criminal action will not be tolerated. australia was the only country outside the european union and nato to take this action. we continue to stand up for shared values into the safety and security of our people. the prime minister stressed the need for the
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international community to enforce sanctions on north korea "until we see complete verifiable anti-reversible impersonation." the two koreas will hold joint or herschel's ahead of friday's historic summit, and president moon and kim jong-un to meet for the first official time. officials will engage in on-site inspections by tracing detailed routes on which the the nurse will walk during the summit. leaders the third time from both sides of the peninsula have met since the korean armistice in 1953. senator warner is warning bankers that legislation going back financial roles put in place after the 2008 economic crisis could stall. lation will not pass if it comes back to the senate for another vote. house republicans want to amend dodd-frank.
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global journalism, 24 hours a day, and at tick-tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. julia: wells fargo has had a pretty big day, and so have the critics of the company. california's treasurer wants kim sloan to step down. when i sent a communication to mr. sloan a couple years ago, but i wasim well, worried about the cultural change instituted at wells fargo. the proverbial wheels are falling off the stagecoach. is not improving its practices and defend the culture as being appropriate. the proverbial dog does not hunt. as you stated in your introductory comment, we were
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just issued -- they were just issued a $1 million fine. the actions taken are unprecedented. headed in the wrong direction. >> i want to get your thoughts on the channel of influence you have. what is the channel of influence you are looking to work through? >> we are operating on multiple fronts. process $2 trillion worth of transactions in the state of california. we have $75 billion in our short-term investment portfolio. i suspended three of our most profitable lines of business with wells fargo. we are going to use our power authority to make sure wells fargo operates in a far more efficient, it and effective
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manner -- and effective manner. is mr. sloan steps aside, would that lead us to the passive sanctions -- to the passive sanctions relief for wells fargo? youhat is one step toward in the right thing, but we have to see cultural change. i sponsored legislation to make sure that people have their day in court. cannot agree to forced arbitration when they are not aware of the fraud being committed upon them. i am here this demand in iowa, that wells fargo -- that people are paying more because of forced arbitration. they are not getting the relief they need. upon torgo has preyed
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many of the most vulnerable in america. i want wells fargo to restore its storied history. julia: that was the california treasurer speaking early on bloomberg. staunchrman made a dfense -- defense of the ceo at that meeting, too. laura, it looks like it was a standard agm. laura: i don't know if it was quite standard. we definitely have a lot of people standing up and wanting to hear from mr. sloan on various issues. on things like foreclosures, medical costs, all kinds of issues presented to tim sloan.
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>> but when all was said and done, in terms of the actual actions taken at the egm, -- agm, the board of the company got what it wanted. noise,as a lot of literal, in some cases, because of the protests, but when it comes to the agm, it nothing was different -- there was nothing different. laura: it was definitely not. the bank has had some criticism in the past for executive compensation. puzzleshe shareholder board voted down, so nothing went forward. and all of them got more than 89% of the votes to keep this going for reelection. there were no surprise is.
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-- no surprises. if you don't have support from large institutional investors, for wall street banks, it is difficult to get shareholder votes passed. i want to draw attention to what a lot of people in the meeting were talking about. protestersabout 100 in the bottom of the patriot. atr -- in the bottom of the ium. we saw investors and journalists creeping out of the meeting to look at some of the messages being presented. julia: thank you, laura keller. faro is slightly higher -- fargo, is slightly higher. outperforming! a quick check on the markets -- and -- 2.4% right now.
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capital now at session lows. 6.8% off-site today. about amazon, our stock of the hour, underperforming biomes 4.8 in the session today. more to come. this is bloomberg. ♪
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julia: this is "bloomberg markets." julie: look at a quick check on market. stocks are sliding. yield is now 2.9958.d after
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let's talk more about the industrial group. abigail doolittle is here. were just talking about the big stocks like for the major averages. this is the worst day in april. a lot of this has to do with the industrial sector. long ago, this was the worst sector on the day. the industrial sector is now down for a fourth day in the row, the longest day losing streak for this sector of the year. despite all the weakness we had, around potential trade wars, this is the longest daily losing streak. a top into the bloomberg and get a sense for what is happening -- let's hop into the bloomberg and get a sense for what is happening. 11 sectors for the s&p 500 are higher.
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just, telecom and utilities, down on bottom. the industrials are not far behind. a bearish day for stocks. relative to the industrials martin, downkheed 6%. they reported their first quarter. but there is ar, disagreement between the company and the air force. the air force secretary saying there is a disagreement about corrosion on f-35's. on chairs andng maybe even the entire defense sector -- shares and maybe even the entire defense sector. this tells the story of the markets on the day.
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caterpillar had been higher premarket, connected with big earnings in the first quarter. made an management interesting comment about quarter one being the high whether mark. -- weathermark. stocks are sliding now. that shows what happens with major averages on the day. that comment was puzzling, concerning the rest of 2018. this is the biggest drag on the industrial sector. lows.ff of the the stock had been on pace for its worst day since 2006. they put up a disappointing quarter. they shaved the high end of the earnings range. investors are not liking what that is about. we can see the degree of surprise across many measures.
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i am looking at the graphic dashboard. we can see the big percent change. the volume is on big selling pressure. i spoke to jeff of vertical research. his valuations show the stock is selling at a premium. he said shares were price to perfection coming into the quarter. -- p[riced to perfection coming into the quarter. >> what exactly is to blame for the weakness? abigail: from auto aftermarket, and dental and drug delivery. that is less than 10% of revenue, but the dental into drug deliveries are very high-margin businesses. relative to the industrial sector overall, we can take a look at this quickly -- this is a look at what is happening for
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the industrial sector overall. in blue is the industrial sector. lockheed martin has been outperforming in a big way. but the news on the air force is taking this leg lower. but 3m is underperforming them all regarding fears of what is next. julia: when we are talking about notices with the likes of sness withr, -- nervou the likes of caterpillar, it is a double whammy. abigail: but then why is caterpillar warming around -- there was such an oblique statement in terms of q1 being the best and 3m saying 2018 could be weak. julia: when we got these forecast upgrades from noerpillar, they said potential geopolitical issues or trade concerns are factored in.
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there was this jarring reaction in light of this conference. thank you. julie: let's get a check on the markets as we had to break. we continue to monitor the selloff. turn was such a dramatic based on caterpillar in the middle of the day. i had to correct myself -- the 10 year yield touched 3%. i have some temporary amnesia. this is bloomberg. ♪
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julie: this is "bloomberg markets." julia: take your pick of market drivers. this is what is going on as far as the dow. now..1% right we have talked about this threat the show. -- throughout the show.
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6.6%, regarding the conference call we mentioned in the show. facebook, a gain at the core around half of the semiconductor names. the semiconductor index is reporting this week. most definitely off the session. we are by our bloomberg intelligence chief strategist. can you explain all of this? >> [laughter] julia: there was optimism this morning in the face of caterpillar, and suddenly some lows. >> we put together a report on yesterday. s&p 500 earnings look impressive until they are not. companies are beating expectations on first-order earnings. they are beating expectations to a large degree.we're looking
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to probably 20% earnings growth when we are done for this first quarter. there will be no guidance to suggest things are going to get better from here. that is the concern for the broader markets. analysts are reducing their expectations. fourth-quarter earnings expectations fell. 2019 earnings expectations have fallen. that is a problem. it is not going to get much better from here and stocks don't know what to do. late cycle,is environmental concerns, or sheer uncertainty? >> it is uncertainty and a reflected of where we came from. back to january, it was going to be a fantastic year of earnings growth. we priced it with such lofty expectations that there was no way companies can meet them going into 2019. when we look at 2019, we are to see close to 20% growth this
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year, probably 10% next year. the equity market likes to see upward momentum and is struggling with that, particularly when we were at extremes. julie: that is not taking into account some of the other factors we were talking about with caterpillar, trade uncertainty or other political factors. p that couldull forward -- that could pull forward that earnings before make it more abrupt. >> caterpillar is not suggesting, we haven't input any geopolitical trade effects into our forecast. thing we should highlight is the fact that companies are being stingy with their cash savings. that is something we haven't talked a lot about. coming into this year, investors were anticipating the results of
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tax performance. >> that they would be doing something with the growth. are they going to spend it on shareholders? what are they going to spend it on? is the answer is, they are not going to spend it? there are select companies that are certainly spending a good amount of money. they are not appointed to shareholders. -- deploying it to shareholders. shareholdersee rising as well, to keep these rates competitive with other asset classes. bank stocksve the down through the 100 day moving average. netflix is taking back sunday and we have seen. -- some gains we have seen. there is a nervousness.
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3%.tenure rates are hitting -- ten-year rates are hitting 3%. to think the 10-year is probably overblown. rising, if it were a big issue, we would not be seeing defensive sectors outperforming, and we are. there is some concern about the economic growth outlook. isn't as strong as we hoped? -- is it as strong as we hoped? aocks are not priced for decline in economic growth, but we are starting to question where we are headed. tax are a vast majority of growth on the index, it without it, investors start to worry -- techs are a vast majority of growth on the index, and without it, investors start to worry. julia: if you think stocks are
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expensive, credit is on the move. such an interesting point to make. gina, awesome work as always, a bloomberg intelligence chief -- our bloomberg intelligence chief strategist. gets: caterpillar bulldozed, next. this is bloomberg. ♪ omberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. julia: this is "bloomberg markets" and we are one hour from the close of equity trades here in new york. the dow in correction territory. let's get to abigail doolittle for more detail.
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abigail: we do have a bit of a selloff on her hands. intraday volatility yesterday. today, it is turning into a bit more of risk off your noticeable pullback, three major averages, each on pace for the worst is a perfect. behind me seems to be jitters around the current earnings season as many companies are beating. there is a but for many companies causing the shares to slide. also from a macro perspective, the 10 year yield higher, earnings today sending some investors and traders wondering what a bigger move up in yield could mean. what it be a big price of an could that turn into a deeper correction for the dow? relative to the dow, now leaned back and corrections territory, this is a five-day chart of the dow. the dow has been down each of the last five days, steadily lower and dropping by 3.4%. first i didn't slide -- five-day slide for the dow.
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despite the big selloff we have seen on daily basis earlier this year, it was not back-to-back. it is something to pay attention to. dow weakness has to do with weakness in the industrial center. 7% on the lows, down more than 1996 --worst day since it did trim the top end of guidance, what does that mean going forward? .owing down there wasosted but disagreement on corrosion. caterpillar down 6.3%. earlier, the shares had been higher. about midday, management indicated q1 was the high water mark and some investors scratch
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their heads as to what that means. travelers down 4% on a disappointing corridor. they missed top and bottom line estimates and the catastrophe clause weighing on earnings. it is not just the industrial sector weighing on major averages. we have to look at technology for worst tracks on the s&p 500, top put up a big beat with and bottom mine estimates. similar to other quarters but rising acquisition costs, that is dragging these other names, facebook and microsoft also reporting jitters about what perhaps would be the ripples there. apple's down once again of course. many cautious comments about what could be ahead for the june quarter. finally, we take a look at the stocks, the apple weakness has been weakness for many chip
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companies and suppliers. rising view the stocks over the last six months, moving into the area of congestion over the last few days, telling you the buyers are really stepping out of the way. the 200 moving day average, below the support, it could mean more bearish action ahead, not just for the trip space but typically, that is seen as a tell for the broader markets, something to pay attention to for sure. julie: yes. thes instruments after news. mark: nuclear agreement with iran. president trump call the iran deal ridiculous and insane. he let it known -- let it be
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with french president emmanuel macron. president trump: this is a deal with decayed foundation. it is a bad deal, a bad structure falling down. made.uld never be mark: president trump says if they start the program, they will have bigger problems than the have ever had before. the israeli government acknowledgment cannot support them against their will. benjamin netanyahu reached a deal with the u.n. -- half of the migrants in western nations and exhort the rest. he called hours later after caving into nationalist critics. in brussels at the start of a two-day international donors conference, the united nations syrian avenue -- envoy warned that the rebel help province
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could become the country's newest humanitarian crisis area. the european union passes foreign policy chief added that syria is not a geopolitical gain. >> astro-med because it is today, it spreads even further and even deeper. syrians, the the men and women, the young men and women, count the most. warned that women, children, and civilians are in danger. members of the house oversight government reform committee are seeking a subpoena for documents to add a citizenship question to the 2020 census. there are concerns the census will cause some to avoid the survey.
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the democrats asked the chairman to issue a subpoena if he declines to issue it himself. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is number. julie: thank you. in the space of a few hours, shares of caterpillar on a high note but in a germanic turn, it is one of the biggest drags on the market. joe, great to have you with us. wrote as much as 20%, this is as good as it gets. you were on the call. what did analysts respond to? >> one was for the high water mark in terms of profits adjusted, profits per share.
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they went through introductory comments on the question started coming in. >> that was not even in response to a question. that was part of the presentation. >> it was at the top of bread going on and it came initially, maybe i had missed what it said before that, and by the third, one of the analysts drilled into it. listen, historically, it is your best profit quarter for the year and they said that is right and we are saying, one might be the best profit quarter for the year. quite one, the cfo is being very transparent putting this out there with the market.
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listen, we did not include in the forward-looking implicationstrade and the possible rising costs. we did not see a followthrough into three or four, we're talking about largely steel. they had great revenues. good., it will not be as high and of the first quarter. >> talking about mining equipment, that was an area of infrastructure. >> there is that on the positive .ide
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we keep wondering when they will say it is not going to in china. latin america have been the bottom of the barrel and is finally coming out of that and that is looking solid. when you look at the way people trade caterpillar, it is a forward-looking stock. they treated the way they do with any other economic indicator. margins are not going to be as good, they will still spend but not be asking busters, then people start wondering, well, where are we right now on the cycle? againstinute, it seems the cashew spent come we have extra cash to spend. are you putting that tort am in day or telling us we have had a peak in there is something for us to look out for? peak. not talking about a on there the questions
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m&a market. >> i was just pulling up the breakdown of revenues whether it is latin america, asia pacific, north america, and if you want to pull up the chart, you can see that. it is small. asia-pacific is the yellow line. north america is this one. you get a sense of the sheer dominance of weight here. off as quiteome surprised? >> i think everybody is surprised. was in this morning saying we expect an even better quarter . that is really how the thing has traded. it was a bad first quarter and they got hit by trade discussions that you know. a mismanagement of future expectations or lowering expectations to such an us -- such an extent that you get a
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surprise to the upside? >> i think that has to be figured out on the market parity few are talking they trade, it is obvious people had in expecting a better second quarter, with good numbers at the end of the year, and they got a taste of, maybe that is not true. >> i want to mention quickly one of caterpillar's client that numbers and more particularly discussed an issue, down 15% right now, it seems to with indonesia, that there has been some kind of a role change. 90's, andement in the go down the river because everything is rainforest. they said it is impossible to havehe mine if they do not through the river. it sounds crazy, but yes. is one of the largest --
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this is quite important for them. saying they cannot operate a mine, if you take this away from us, you're seeing it in the stock. >> what about buybacks quickly? do you remember what they set about buybacks going forward? to it. come back >> clearly there are other issues they are looking at. >> coming up, considering a new -- a $60 million bid for a fourth time. a quick check on markets.
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the decline bouncing off the lows, the nasdaq had now paired their declines for less than 2%. this is bloomberg. ♪ s is bloomberg. ♪
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julia: time for a look at some of the biggest stories right now. favor by 92% voted in regulators and protesters call for the management shakeup. the rate was down from 96% in 2017.
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starbucks is opening up more drive-through windows, slowed at 14,000 u.s. cafes. customer priorities have shifted from the sit-down coffee culture to convenience and speed. 80% of all new stores will offer a drive-through option. the food and drug administration trying -- cap sales to young people. including seven and 11 violated laws trying against minors. the fda says it is trying to figure out why it is so popular among the young. and that is your business flash update. julie: finally offered a price of a win over shire? the bidding could finally be reaching a conclusion. here now with more is the bloomberg news reporter. what indications to we have?
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>> i don't know. there is no staying for it. they have bumped and bumped again. they are now talking to her that is a positive step. it said they will review them and then come out again and reject them. this is progress. site had discussions based on discussions to improve the effort. we do not know yet to what. looking at that latest offer. >> is the price right? that is the key. >> the bums have been very small. whatever they offered, it would be an improvement or they would change the composition. thus far, they have offered a lot of stock and some cash. do notf shareholders want to hold japanese paper. they thing holding the shares of a japanese company is not in the best interest of shareholders and so they are asking for more cash.
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can it actually put more cash ?nto steel it already has a lot of debt. $60 million it will roughly need to spend. there is only a certain amount of leverage to put on the acquisition. it is only -- already buying coming substantially different. >> what was the thing we got from the last thing? >> a think about $21. 21 pounds i should say. so, there is likely some movement around in the way that takes down but it is possible they offer a high number as well. if you find you tried to do the -- in the recent past, you know what he just -- another potential buyer --
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not too long ago, the deal broke down. would makeion rules it less economically viable. you will be worried about that. question is did it over with. here on barclays, doing hiring on m&a on the retail team. >> is interesting because the investment banking is something the ceo has been keen on expanding her he talked about it being a key driving revenue on the bank. he is wedding the future of the bank. they hired three big-name investors from ubs to come into the consumer retail team. more on the street. this is a big statement of intent by them. thereup in an area where
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are likely to be other deals. >> even busier. >> exactly. you.unt on breaking news on an update on you. the jet engine blast aboard -- aboard the salvage an airline flight. it came as the engine maker mapped the safety check. one of the engines blew apart at 32,000 feet over pennsylvania. the boeing 737 of shrapnel and it killed a mother of two. transportation safety board says a family that snapped off the engine was showing signs of metal fatigue. we are learning more about the safety checks that the engine maker has been doing. we will give you more information when we have it and give you more information on these developing headlines. this is bloomberg.
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>> joining me today is the chief options strategist at interactive brokers. we have been watching semi to -- semiconductors today. there was initially a rebound this morning and then it came on down with the rest of the market. not are charts telling you, to mention the fundamentals, on semis and where they go from here? >> let's start with pull up and pulled back. i think the technology is worry some. one of the underpinnings of the markets is that all the earnings will be great. the earnings have been pretty good generally but the market is still my happy with what they are getting. that to me is a worrisome psychological underpinning. >> they just haven't been good
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in the cases we have heard so far. materialey are the raw for the technology sector. itthey are not doing well, is hard to posit a great response for the rest of the technology sector. >> charts, the trade you're looking at, i have a chart that you are looking at technical levels with the semiconductor, that is what we look at third -- at. what does this say to you? >> this is scary from a technical point of view. too many would indicate head and shoulders, one of the scariest technical patterns. the fact that it coincides with the moving average means we are very susceptible to a breakdown. that is something that has got to be worrisome to people. it does not mean it happens today or tomorrow, but there is a big fight and if it does not
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hold, it can be detrimental to the pricing. >> how do you play through the options of the market? >> in may come off through the times we threw off the trade. the original way would be buying that money for short-term and now, in the money, and the 95 level is the defensive level. >> eu just knock this down a couple of hundred dollars. >> exactly. to skip itant altogether because the problem was at 98, there were three dollars of downside to play risk and excuse your risk reward it would be a two to one payout now 121, so you want to play out right rather than go on a spread. >> quickly, how concerned are you about what semis mean for the rest of the market? >> quite. certain industries have raw materials. for banking, it -- it is money.
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if people aren't buying semiconductors, what does that mean for the rest? it is a little scary. >> all right we will watch tech earnings for the rest of the week. thank you so much. a quick check on the markets as we head to the break. are off the they lows of the session and the semiconductor down actually less than the broader market, for what it is worth. from new york, this is bloomberg. ♪ this wi-fi is fast.
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i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. >> i am mark crumpton with first witness. the manufacturer of the engine that blow up on a southwest plan was preparing to recommend inspections that would have included the one that failed.
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one passenger died in the explosive decompression about 30,008. early reports that cfm international recommended that carriers inspect a limited population of older families that didn't prove the one that the best way but a draft recommendation circulated this for the input and would have expanded the list enough to include the engine. iran's representative to the united nations told the yuan nuclear nonproliferation conference in vienna that iran's landmark nuclear deal will not be negotiated or altered. were told that the u.s. will be responsible for any consequences of what he calls its reckless policies against the joint company and to plan of action. sense andlicy unambiguous message to others at are u.s. is not a reliable


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